CICC: Shanghai's reduction of residential purchase restrictions may help stabilize local housing prices.

The research report of CICC stated that on February 25, 2026, five departments in Shanghai jointly issued a notice on further optimizing and adjusting the city's real estate policies, further reducing housing purchase restrictions, optimizing housing provident fund loan policies, and improving individual property tax policies. The supply and demand structure of housing in certain top-tier cities has shown positive changes, and policy coordination may accelerate the stabilization of local housing prices. Recently, the listing clearance cycle of second-hand houses in some top-tier cities such as Beijing and Shanghai is gradually decreasing to historical levels where housing prices are stabilizing, mainly driven by the continuous decline in the listing volume of existing houses due to a decrease in new listings and an increase in delistings, rather than a temporary rise in transaction volume driven by policy, indicating that social inventory clearance is close to completion and there is a foundation for housing price stabilization. Furthermore, continuous targeted efforts on the policy front may accelerate the process of housing price stabilization in local areas, including measures directly addressing inventory issues such as the "de-stocking" highlighted in the Central Economic Work Conference and the trial pilot program for second-hand house purchases in Shanghai, as well as demand-boosting measures such as adjustments to purchase restrictions in Beijing, value-added tax and personal income tax preferences for second-hand house transactions, and adjustments to purchase restrictions in Shanghai. CICC calculates that Beijing and Shanghai together contribute 30% of the national transaction volume of second-hand houses and 10% of new house transactions, and the stabilization of housing prices in top-tier cities will help stabilize the overall housing market in the country.